Sensex Plunges Over 1,000 Points As Trump’s Iran Remarks Trigger Sell-Off
Indian benchmark equity indices fell sharply on Wednesday after US President Donald Trump said he no longer wanted to pursue an understanding with Iran, raising concerns over renewed geopolitical tensions in West Asia and their impact on global oil supplies."To me, I think it's over. I don't want to deal with them... It's just a waste of time dealing with them. They're liars," Trump said, triggering a risk-off sentiment across global markets.
At around 2 p.m., the BSE Sensex was down 1,090.89 points, or 1.4 per cent, at 77,089.83, while the NSE Nifty50 declined 345.10 points, or 1.41 per cent, to 24,053.60.
Crude Rally Weighs on Markets
The sell-off coincided with a sharp rise in crude oil prices after fresh geopolitical developments in the region. Brent crude climbed 5.66 per cent to USD 78.35 per barrel, raising concerns over India's import bill, inflation and corporate profitability.
Oil marketing companies, airlines, paint makers and tyre manufacturers came under pressure as investors assessed the impact of higher fuel and input costs. Shares of Asian Paints, InterGlobe Aviation and ITC were among the top losers on the Nifty50.
On the other hand, upstream oil producers benefited from the rally in crude prices. Oil and Natural Gas Corporation and Oil India traded higher during the session.
Risk-Off Mood Dominates
Most sectoral indices traded in negative territory, with oil and gas, FMCG and auto stocks leading the losses. Pharma stocks bucked the broader trend as investors shifted towards relatively defensive sectors. The Nifty Midcap 100 and Nifty Smallcap 100 indices also ended lower, though their losses were less severe than the benchmark indices.
Global cues remained weak after Asian markets declined and US equities closed lower overnight, adding to the cautious mood.
Meanwhile, India VIX, the market's volatility gauge, surged 19 per cent to 13.82, reflecting heightened uncertainty among investors.
The rupee also weakened by 20 paise to 95.16 against the US dollar, as rising crude oil prices and geopolitical uncertainty strengthened the greenback and increased pressure on the domestic currency.
Despite the broader weakness, select stocks outperformed the market. Info Edge gained after attracting buying interest, while Kalyan Jewellers advanced following a strong business update for the June quarter.
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